Hennelly v. Saul
- John Koeltl
- 1:20-cv-04786
- U.S. District Court · Southern District of New York
- 8
In Hennelly v. Kijakazi, Judge Koeltl granted counsel $54,395.50 in Social Security fees and required a $6,817 refund to Hennelly.
Joseph Hennelly and his counsel; counsel receives the approved fee and must refund $6,817 to Hennelly.
What happened
In Hennelly v. Kijakazi, Joseph Hennelly received $217,582 in past-due disability benefits after his claim was sent back for further administrative proceedings and approved. His lawyer then asked for a fee equal to 25% of those benefits.
The court found the requested fee reasonable because it was within the legal limit, counsel achieved benefits in a difficult case, and there was no evidence of undue delay, fraud, or overreaching. The court also found that the fee was not an improper windfall despite the resulting effective hourly rate.
Judge Koeltl granted the fee motion and awarded counsel $54,395.50 under the Social Security Act. Because counsel had already received $6,817 under the Equal Access to Justice Act for the same work, counsel must refund that amount to Hennelly.
The detailed version
- Hennelly v. Saul · No. 1:20-cv-04786
- John Koeltl
- June 5, 2023
Background
Joseph Hennelly brought a federal case seeking past-due Social Security Disability Insurance benefits. His application had initially been denied by an administrative law judge, and the Social Security Administration’s Appeals Council declined review. After Hennelly filed the federal case, the parties agreed to send it back to the Social Security Administration for further proceedings. On remand, an administrative law judge found Hennelly disabled and approved benefits. The Social Security Administration determined that Hennelly was owed $217,582 in past-due benefits and withheld 25% to pay representative fees.
Hennelly’s counsel had a contingency-fee agreement providing for 25% of past-due benefits. Counsel requested $54,395.50 under 42 U.S.C. § 406(b). Counsel had also received $6,817 under the Equal Access to Justice Act for the same work and agreed that Hennelly was entitled to a credit for that amount.
Court’s analysis
Section 406(b) allows a court to approve a reasonable attorney’s fee in a successful Social Security benefits case, subject to a cap of 25% of the claimant’s past-due benefits. The court evaluated the contingency agreement by considering the quality and result of the representation, whether counsel caused unnecessary delay, fraud or overreaching, and whether the fee would create an improper windfall.
The court found the fee reasonable. The requested amount was below the statutory cap; counsel had been instrumental in obtaining benefits after the administrative denial; and there was no indication of substandard representation, undue delay, fraud, or overreaching. The court also found no improper windfall. Although the requested fee represented an effective hourly rate of $1,705.16, the court considered counsel’s experience, the 31.9 hours spent reviewing the administrative record and preparing the case, the continuing attorney-client relationship, and the uncertainty of obtaining benefits.
Disposition
The court granted the motion for attorney’s fees. It awarded counsel $54,395.50 under Section 406(b), representing 25% of Hennelly’s $217,582 in past-due benefits. Because counsel had also received $6,817 under the Equal Access to Justice Act for the same work, counsel must refund $6,817 to Hennelly. The clerk was directed to close the fee-motion docket entry.
Read the full 8-page opinion on CourtListener, the free public archive maintained by the Free Law Project.